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    Chinese Clothing Industry'S Cold Wave Hits Under Inventory Pressure

    2012/11/13 15:51:00 30

    Mei Bang ClothingGarment IndustryGarment Enterprise

     

    One time ago, one

    American Apparel

    The news of huge stock has attracted many people's attention to the clothing industry.

    And for a period of time, Semir, PEAK and other profits decline, stores continue to shut down news is also continuous.


    Let's take a look at the three quarterly report of the listed companies in the textile and garment industry.

    According to the classification of shwan industries, 79 clothing and textile companies have eliminated ST companies, as well as the main companies such as Shanshan, YOUNGOR, and so on, leaving 68 main textile and garment categories.

    As a whole, the net sales rate of the third quarter fell by about 1.5% year on year and the ring ratio, the net profit declined by 34%, and the stock rose by 7% over the same period.

    According to customs statistics, textile exports declined further in the 1-8 months of this year, with a total export of US $161 billion 990 million, a decrease of 0.7%, of which 62 billion 510 million of textile exports and 99 billion 480 million US dollars of clothing exports were all down 0.7%.

    At present, China's clothing industry is experiencing a long time of cooling.


    High inventory or wholesale distribution mode, the clothing industry has its own attributes, it is very difficult to achieve "zero inventory", inventory is its biggest "natural enemy".

    The process of stock taking almost means that its profit has shrunk.

    Because a large number of products backlog, not only occupy the company's operating capital, manpower and material resources, but also lengthen the turnover cycle of products, and reduce overall profits.

    But "high inventory" is the common experience of garment enterprises this year.

    Flush statistics show that only from the first half of this year, the total inventory of more than 80 listed companies in the textile and garment sector amounts to 67 billion 166 million yuan.


    Industry analysts believe that this year's macro-economic downturn, GDP is facing a downturn, the whole consumer market is cold, clothing enterprises are facing the main reason for inventory pressure.

    In the past few years, the garment industry has expanded rapidly, and the stock pressure has been obscured by the good economic situation. Now the economy is in recession, the crisis is exposed.

    However, some experts said that although the market downturn is the main reason for the high inventory of clothing, the industry can not ignore it.

    Garment industry

    Disadvantages of wholesale distribution mode.


    At present, the wholesale distribution mode of "brand dealers wholesalers (agents) retailers" is widely adopted in the sales channels of domestic clothing enterprises. There are many disadvantages in this mode, which are mainly manifested in the slow and inaccurate response to market supply and demand, and the agents are ordering more commercial products to prepare for the discontinued goods, and the brand stores reserve more commodities for replenishment, thus forming the phenomenon of demand "mutation amplification".

    Some people in the industry have cited an example: for example, terminal customers actually need only 10 pieces, and retailers will think that they need 15 pieces, reaching 20 distributors, and finally, they will be expanded to 20 to 30 pieces in the production enterprises, which is several times higher than the original ones.


    Yes

    Clothing enterprise

    For example, in addition to the special season like Spring Festival, autumn and winter, there is no obvious fluctuation in customer demand throughout the year.

    After the enlargement of retail sales and wholesalers, the order quantity will be increased step by step, and the number of the top of the supply chain will be significantly larger.

    The industry also said that another important reason for high inventory is that our clothing production mode still stays in the "order meeting" mode, such as spring, autumn and winter ordering, the market information is mainly provided by downstream distributors, but according to the order quantity production, there is very little information from the first line consumers.

    In this production mode that breaks away from consumer demand, the garments produced are often behind the prevailing colors and styles, with lagging nature, and sales will be lower than expected, thus forming high inventories.

    The average cycle of garment manufacturers from listing to finished products is three months, sometimes even longer.

    When the finished products are lagged behind the market for three months, inventory backlog is inevitable.

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